Dun & Bradstreet Holdings, Inc. (NYSE: DNB) announced unaudited financial results for the third quarter ended September 30, 2020. A reconciliation of U.S. generally accepted accounting principles (“GAAP”) to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Use of Non-GAAP Financial Measures.”
- Revenue of $442.1 million, up 8.3%, and up 7.8% on a constant currency basis; which includes the net impact of lower deferred revenue purchase accounting adjustments of $38.2 million.
- Net loss of $17.0 million, or diluted loss per share of $0.04, and adjusted net income of $101.3 million, or adjusted diluted earnings per share of $0.24.
- Adjusted EBITDA of $197.0 million, up 27.0%, and adjusted EBITDA margin of 44.6%, an increase of 660 basis points; which includes the net impact of lower deferred revenue purchase accounting adjustments of $38.2 million.
- On October 7, 2020, Dun & Bradstreet announced that it has entered into a definitive agreement to purchase the outstanding shares of Bisnode Business Information Group AB, a leading European data and analytics firm and long-standing member of the Dun & Bradstreet Worldwide Network. The transaction is expected to close in January 2021, subject to required regulatory approvals and customary closing conditions.
“We are pleased with our solid performance in the third quarter, which was in line with our expectations, and provides us with the confidence to reiterate our guidance for full year 2020,” said Anthony Jabbour, Dun & Bradstreet Chief Executive Officer. “Client engagement is strong, as is demand for our mission-critical data and analytics across our portfolio. We are making progress against our growth strategy and ongoing transformation to unleash further potential, drive innovation and deliver solutions that help businesses in every industry to compete, grow and thrive.”
Third Quarter 2020 Segment Results
North America revenue was $363.3 million, a decrease of 3.0% as reported and on a constant currency basis. Finance and Risk revenue was $206.6 million, a decrease of 0.8%, as reported and on a constant currency basis, primarily due to lower usage revenue across our Finance and Risk solutions mainly attributable to the impact of COVID-19, lower revenue due to timing of fulfillment in our Government business, and the impact of structural changes in our legacy Credibility solutions, partially offset by an increase in our subscription-based revenue in our Risk and Government solutions. Sales and Marketing revenue was $156.7 million, a decrease of 5.8%, as reported and on a constant currency basis, primarily due to lower royalty revenue from the Data.com legacy partnership along with lower usage revenue across our Sales & Marketing solutions partially due to the impact of COVID-19. North America adjusted EBITDA was $184.2 million, a decrease of 2.8%, with adjusted EBITDA margin of 50.7%, an increase of 10 basis points.
International revenue was $79.8 million, an increase of 9.7%, and an increase of 7.2% on a constant currency basis. Finance and Risk revenue was $66.3 million, an increase of 13.9%, and an increase of 11.6% on a constant currency basis, primarily due to higher cross border data revenue from WWN alliances and higher revenue from our U.K. market, partially offset by lower usage volume in our Asia market primarily due to the impact of COVID-19. Sales and Marketing revenue was $13.5 million, a decrease of 7.3% and a decrease of 10.0% on a constant currency basis, primarily attributable to lower revenue from our U.K. market and lower usage volume in our Asia market primarily due to the impact of COVID-19, partially offset by increased revenue from WWN alliances, primarily a result of increased product royalties. International adjusted EBITDA was $28.2 million, an increase of 11.0%, with adjusted EBITDA margin of 35.4%, an increase of 40 basis points.
Dun & Bradstreet is reiterating its previously provided full year 2020 outlook as follows:
- Revenue is expected to be in the range of $1,729 million to $1,759 million.
- Adjusted EBITDA is expected to be in the range of $704 million to $724 million.
- Revenue and adjusted EBITDA include a ($21) million impact from deferred revenue purchase accounting, in both the low and high ends of the range.
- Adjusted EPS is expected to be in the range of $0.89 to $0.93.
- Adjusted EPS includes a $(0.04) impact from deferred revenue purchase accounting, in both the low and high ends of the range.
The foregoing forward-looking statements reflect Dun & Bradstreet’s expectations as of today’s date and Revenue assumes constant foreign currency rates. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. Dun & Bradstreet does not intend to update its forward-looking statements until its next quarterly results announcement, other than in publicly available statements.